Winery BP 0206

BUSINESS PLAN
Business Plan Prepared By
Bill K. Freeman
Vice President Operations and Winemaker
1234 West 12th Terrace

Westhill, StateB 66000
000-555-6932
Date Prepared
December 200A
Chapel Springs Winery Business Plan

Table of contents
EXECUTIVE SUMMARY
MANAGEMENT AND ORGANIZATION PLAN

Management team
Compensation and ownership
Board of directors/advisory board
Infrastructure
Contracts and franchise agreements
Recruitment and selection of employees
Employee reward and incentive plan
Communication and change
Organization
6
6
7
7
8
8
8
8
8
9
PRODUCT/SERVICE PLAN
Purpose of product/service
Features and benefits
Stage of development
Intellectual property
Governmental approvals
Product/service limitations
Product/service liability
Related products/services and spin-offs
Production
Facilities
Suppliers
10
10
10
11
11
11
11
12
12
13
13
13
MARKETING PLAN
Industry profile
Current size
Growth potential
Industry trends
Other characteristics
Distribution channels
Competitive analysis
Market analysis
Target market profile
Customer profile
Future markets
Pricing
Pricing structure
Price list
Pricing policies
14
14
14
14
15
15
16
17
18
18
19
19
20
20
20
20
Market penetration
Location
Direct sales force
Brand identity
Customer service
Advertising and promotion
Publicity
Direct mail
Internet
Trade shows
Market activities schedule
Market penetration effectiveness
21
21
21
21
21
22
22
22
22
23
23
23
23
OPERATIons PLAN
Operational systems
Operations system workflow
Operational improvements
24
24
25
26
FINANCIAL PLAN
Start-up costs
Sales projections
Income projections
Cash requirements
Sources of financing
Exit strategy
Projected financial statements
Start-up funding & expenditures
Monthly cash flow report (for three years)
Year-end income statement
Year-end balance sheet
Ratio analysis

27
27
27
29
29
29
29
31
Appendix
supporting documents
Sales projections
Inventory projections
Operating expenses projections
Depreciation schedules
Capital budget projection
Equity & debt worksheet

Executive Summary
History
Chapel Springs Winery was recently formed. The owners have been involved in product
development and testing and are now ready to formalize their relationships and begin
production and marketing.
Description
Chapel Springs Winery, LLC, is a vertically integrated boutique vineyard and winery located
in Auxville, StateA. Our annual goal is to produce, market and sell up to 5,000 gallons of
distinctive, rich, artisan wines ($11 to $20 a bottle) directly from the winerys tasting room
(retail) to progressive wine consumers, and to a lesser extent through selected restaurants
and distributors. We plan to begin production August 200C and to open our doors for sales
November 200C.
Organization

Paul S. Oberon, Ph.D. President & CFO

Dr. Oberon, retired, was Vice Chancellor Emeritus and Professor at the University of
StateB Medical Center where he was extensively involved on the boards of numerous
governmental and private organizations specializing in business innovation and
development. This experience in strategic business planning will be the guiding force
leading the management team.
Bill K. Freeman, CSP, P.E. Vice President & Winemaker

Bill is Vice President and Business Leader of Risk Control Strategies with Marsh Inc.
in Metro City and has eighteen years of experience in consulting. He has developed
his winemaking skills the last twelve years learning and gaining hands-on experience
from commercial winemakers, professional wine conferences, technical courses and
field experience. He has achieved numerous awards in national and regional wine
competitions.
Jill K. Freeman Vice President, Marketing and Business Operations
Jill has a Bachelors degree in Business Administration/Marketing from StateB State
University. Her most recent position as Interim Finance Director at WeCare Learning
Center has provided her insight and experience in operating a small business.
Linda K. Oberon Vice President, Facilities and Tasting Room
As a past president of the University Auxiliary, Linda Oberon led many successful
ventures for the Auxiliary including the start-up of the University Gift Shop and the
development of the WeCare Learning Center, Inc. She also held the position of Board
President of WeCare Learning Center, Inc.
Chapel Springs Winery will establish an advisory council consisting of selected business
leaders and experienced marketers along with community representation. The advisory
council will meet with the management team semi-annually to review strategic issues.

Market
Premium wine consumption is up an estimated 15% in the United States in 200A for wines
priced between $7 and $14 a bottle, while luxury wines ($25 and up) increased 18%.
According to the StateA Department of Agriculture Grape and Wine Program, StateA wines
have increased their market share 42% from five years ago.
With the rapid growth of progressive wine drinkers looking for something different, Chapel
Springs Winery will create a visceral wine experience offering unique wine varietals best
suited for the region, complementing regional foods such as spicy barbecues, quail, turkey,
venison, trout, other wild game, and home-style meals.
Operations
The Oberons will lease 39 acres to Chapel Springs Winery for the winery and vineyard site
on a long-term lease of one dollar ($1.00) per acre, per year. The 39 acres are available for
collateral. The Oberons and Freemans will invest $30,000 of their own funds. Chapel Springs
Winery will annually purchase grapes for winery production from its sister business, Oberon
Vineyards.
Financing
Bill and Jill Freeman are seeking a personal mortgage loan for $55,000 for the winery
production and tasting room facility, which they will lease to Chapel Springs Winery. The
company is requesting a $25,000 loan for winery production equipment including winepress,
stainless steel fermentation and storage tanks, bottling equipment and transfer pumps.

Management and Organization Plan
Management team
President & CFO: Paul S. Oberon, Ph.D.
As President and Chief Financial Officer (CFO), Dr. Oberon will provide the company strategic
business and financial planning guidance. Prior to his retirement in July of 1999, Dr. Oberon
was Vice Chancellor Emeritus and Professor at the University of StateB Medical Center. He
served on numerous advisory boards of governmental and private organizations specializing
in business innovation and development. Dr. Oberons experience and knowledge of strategic
business planning will guide the management team.
Vice President of Operations & Winemaker: Bill K. Freeman, CSP, PE
Bill Freeman will be responsible for the day-to-day winery operations. He will determine wine
styles and implement the winemaking techniques to fit the companys marketing strategy. Bill
will also be responsible for winery maintenance and safety.
Bill is an accomplished winemaker recognized by many commercial StateA winemakers. He
has honed his winemaking skills over the past twelve years with the help of mentors in the
commercial winemaking industry. He has studied wine chemistry through short courses from
the University of California-Davis, and worked as an apprentice in two commercial wineries.
He regularly attends professional winemaking conferences, short-courses, and tastings to
stay abreast of new developments and techniques in the industry. Bill continues to advance
his knowledge and skill through his involvement in an experimental vineyard in Leaton,
StateA. He has won numerous awards for his wines in both regional and national wine
completions, winning best of show in StateA in 1997.
He has been a safety consultant for nineteen years, and has worked with Maxwell, Inc. over
the past 14 years as the business leader of the Metro City Office. His consulting role provides
him experience in business planning and management. He has a Master of Science in
Occupational Safety.
Vice President of Marketing: Jill K. Freeman
Jill Freeman will establish and implement the strategic marketing plan and maintain an active
role in the local community and the StateA Grape and Wine Program. Jill has a Bachelors
Degree in Business Administration/Marketing from StateB State University. Her most recent
position as Interim finance director at WeCare Learning Center provides her experience in
many aspects of small business operations.
Vice President of Facilities and Retail: Linda K. Oberon
Linda Oberon will act as liaison with vendors, manage materials procurement, and coordinate
and manage retail sells in the tasting room. As a past president of the StateB University
Medical Center Womens Auxiliary, Linda led many successful ventures for the Auxiliary
including the start-up of the University Gift Shop, and the development of the WeCare
Learning Center, Inc. She was board president for the WeCare Learning Center.
See Appendix for resumes.

Compensation and ownership

Chapel Springs Winery will be established as a Limited Liability Corporation (LLC). The
management team will own the company as follows:

Paul S. Oberon
Linda K. Oberon
Jill K. Freeman
Bill K. Freeman
20%
20%
30%
30%
Board of directors/advisory board

Advisory council member Company/address
Expertise
Lila Sargent
Accountant

820 E. Primrose
Springton, AA 00000
(000) 555-1212
Current accountant for

Oberon Enterprises LLC
Jim Lutz
Attorney

1010 Walnut, Suite 500

Metro City, AA 00000
(000) 555-2500
Current lawyer for

Oberon Enterprises LLC
Dr. Mundi Dhrakamikari

State Enology Advisor

Southwest StateA State University State enologist providing

9740 Red Spring Road
commercial vintners technical
Mountain Air, AA 00000
advice on winemaking
(000) 555-4105
Bob Andrews
StateA Department of Agriculture
StateA Grape and Wine Grape and Wine Program
Program Administrator
Capital City, StateA

(000) 555-6807

Assists in developing StateA

wine marketing strategies
including promotional
interviews, publications, wine
tastings, and other public
events
Mary Zimmerman
Les Zimmerman
StateB winery owners
Commercial vineyard and

winery operations
Retail and tasting promotions
Best-Field Vineyards
Basher, StateB
(000) 555-2342
Carl and Karen Gold

Peaceful Bend Winery
StateA winery owners
Technical advice on
commercial wine operations
Infrastructure
Infrastructure member
Company/address
Role
Dan Holden

Americas Bank
7568 Money Lane
Metro, AA 00000
Banker
Loretta Bedford

Accounting Services
7777 W. 8th
Metro, AA 00000
Accountant
Jeffrey Smith

Smith, Tilden & Underwood

3434 South Boulevard
Metro, AA 00000
Attorney
Contracts and franchise agreements

The following contracts will be found in Appendix B:
LLC Management Agreement
Insurance Funded Buy-out Agreement
Recruitment and selection of employees

For the foreseeable future, most job functions will be performed by the four owners. The
only employees will be part-time and will receive on-the-job training.
Employee reward and incentive plan

Ownership of the company will remain in the family with no plans to use stock options or
other incentives.
Communication and change

The ownership/management team meets on a weekly basis. Daily communication is through
email. The small team is in agreement on the levels of quality and service to be associated
with Chapel Springs. Clear division of duties and a policy of written updates will ensure
consistency as we grow.
Organization
Paul Oberon
President & CFO
Jill Freeman
Vice President
Marketing and Sales
Bill Freeman
Vice President
Operations & Winemaker
Linda Oberon
Vice President
Facilities and Retail

Product/Service Plan
Purpose of product/service
Chapel Springs Winery, a boutique winery, will provide distinctive, rich, artisan wines to
progressive wine consumers. With the rapid growth of progressive wine drinkers looking for
something different, Chapel Springs Winery will create a visceral wine experience offering
unique wine varietals best suited for the region. Our regional wines will complement our
regional foods such as spicy barbecues, quail, turkey, venison, trout, other wild game, and
home-style meals.
Features and benefits

Chapel Springs Winery will be a vertically integrated vineyard and winery operation
allowing for complete control of fruit and wine quality. From planting and harvesting
through production and finally to the customers palate, we will work to ensure every
bottle is our best. Our operations unique features designed to enhance our customers
experience include:
Harvest Parties for interested friends of the winery to participate and celebrate in the
harvesting and crushing of the grapes.
Environmentally friendly vineyard and winery incorporating Integrated Pest
Management (IPM) in the vineyard, and recycling and composting programs in
the winery.
After eleven years of experimenting with different varietals and perfecting his wine
styles, Bill Freeman, winemaker has selected six specific wines that the winery will
offer. These wines will complement local fare including:
Norton a dry full-bodied red wine native to StateA, rich with bold cherry fruit, and spicy
oak characters made to stand up to spicy barbecue sauces, smoked meats, and chocolate
(similar to an Australian Shiraz).
Chambourcin a dry medium-bodied red wine with blackberry and strawberry fruit
much like a Pinot Noir complementing many dishes including pan-fried quail, venison, and
cheeses.
Cabernet Franc a dry red wine with pretty violet aromas, firm tannins and excellent
blending qualities that will add enjoyment to lamb dishes, steaks and other flavorful foods.
Chardonel a dry full-bodied white wine similar to chardonnay with crisp acids and pear
and apple fruit flavors that go well with chicken, veggies and fresh baked bread.
Traminette a slightly sweet (off-dry) white wine with some spiciness, honey and mineral
notes, rich tropical fruit that is best paired with grilled bratwurst, German dishes, oriental
dishes and spicy foods.
Vignoles a sweet dessert wine with loads of pineapple, honey, and a crisp backbone to
balance the sugar, making it perfect as an aperitif or after dinner sipper.
10
Stage of development
Chapel Springs Winery is currently in the start-up stage. We plan to start production August
200C with our first wine sales to begin in November 200C. The following is our projected
schedule:
January 200B
Winery Facility and Process Design
April 200B
Begin construction of facility
October 200B
Complete facility
February 200C
Complete installation of winery processing equipment
March 200C
Initiate BATF and state licensing process
August 200C
Obtain approvals and begin production
November 200C
Open tasting room and begin sales
Chapel Springs Winery will continue to look for new wine varietals and styles to attract
and retain the progressive consumer. Our winemaker will continue to stay current with new
technologies and processes in the wine industry through professional organizations, trade
journals and industry networking. The members will continue to use the state resources
available, and attend technical winemaking short courses and conferences. We have
established relationships with the Southwest StateA State Universitys enology and viticulture
program headed by Dr. Tom Farrar and the StateA Department of Agricultures Grape and
Wine Program headed by Bob Andrews that will enable us to stay current in StateAs wine
industry trends.
Intellectual property
Chapel Springs Winerys trademark will consist of the name and logo.
Government approvals
Chapel Springs Winery will meet all regulatory requirements and obtain all required bonds,
permits, licenses and approvals from the Bureau of Alcohol, Tobacco, and Firearms (BATF),
StateA Alcohol Beverage Control, and a County merchants license prior to operation.
The operation does not plan to have more than 6 employees, under the 10-employee
threshold requiring Occupational Safety and Health Administration (OSHA) written safety
and health programs.
Product/service limitations

Wine is a living product that will change with time.

White wine quality will start to decline after two to three years in the bottle.
Red wines will improve with age for 10 years, and then begin declining.
Wine can only be sold and consumed by adults 21 years or older.
Wine is to be consumed in moderation, preferably with food and friends.
Drinking and driving do not mix.
11
Product/service liability
Purveyors of food and drink run the risk of a consumer becoming ill from a bad or spoiled
product. This is highly unlikely since a bad wine will be discovered in the first few sips.
However, we will carry insurance against this possibility.
Another real risk comes from serving alcohol and sending a customer out the door and onto
the road in an impaired driving condition. Chapel Springs Winery will promote responsible
wine enjoyment, advocating and providing education in wines proper use with food, family
and friends. Linda Oberon will manage the tasting room and will serve food and measured
amounts of wine to guests. Bread, crackers and cheese will be served to customers with
wines. A policy will be established regarding identifying and handling guests that have had
enough to drink. In addition, the tasting experience will be accompanied with information
about grape varieties, wine styles, food pairing with certain wines, and the general
winemaking process.
Insurance coverage will be obtained from Jim Farley, insurance agent, specializing in StateAs
wine industry. Lines of coverage and limits will be obtained based on the insurance agents
recommendations for the following:
Liquor liability coverage Tasting Room service
Corporate general liability coverage Winery Premises
Products liability Wines
Property coverage Facility, equipment, contents, and inventory
Related products/services and spin-offs

The retail tasting room will offer many wine-related accessories, wine glasses, Riedel crystal
stemware, wine-related clothing, handcrafted goods, crackers, local cheeses and sausage
meats for sale. In addition, regional artists will display their work at the winery for sale on
consignment.
12
Production
The wine production process will generally include the following steps:
1. Crush and press grapes are destemmed, crushed (broken open), and pressed to
obtain the juice in preparation for fermentation.
2. Fermentation juice is converted to wine by adding wine yeast to the juice in a
fermentation tank and allowing it to ferment for 10 to 30 days.
3. Aging and Storage wine is allowed settle and stabilize in tanks, then it is racked into
clean tanks leaving sediment behind. Some wine is aged in oak barrels to impart oak
characteristics. Red wines may be aged 6 to 24 months.
4. Fining, Filtering, and Bottling fining and filtering are used to finish and clear the
wine, removing unwanted proteins and other micro particles. Bottling is the final step
of the process.
Facilities
The winery will be a two-level building with 2,400 square feet (40 x 60) on each floor.
An outside crushing and pressing pad (20 x 20) will be attached under a protective roof
structure. The winerys production area on the bottom level will include a refrigerated
storage area for cold stabilizing wines (15 x 15), tank and cooperage storage area, a small
laboratory for wine chemistry analysis, and a finished product storage area. The tasting room
(on the top floor) will be at the front of the building (20 x 40) with a banquet room (40 x 40)
attached. Plans for future expansion will be incorporated into the design.
Suppliers
Winery
equipment
Stainless steel
tanks
Oak barrels
Lab ware
Suppliers
Criveller
Company
Mueller Tanks
World Cooperage
Vinquiry
Vinquiry
Prospero
Equipment
Criveller
StaVin Inc.
The Wine Lab Scott Lab
Pasco
Prospero
Barrel Builders
G. W. Kent
Presque Isle
G. W. Kent

Tonnellerie
G. W. Kent
Mercier
13
AMP
Wine Bottle
& Packaging

Marketing Plan
Industry profile
Current size
U.S. consumers spent $19 billion on wine last year, according to the American Vintners
Association (AVA). Wine consumption is growing and the AVA projects an annual increase in
wine sales of 8 to 10%.
Prior to Prohibition, StateA was the countrys second-biggest wine-producing state. Now
StateA is one of the top 20 in U.S. wine production with sales less than 1%. StateAs 32
wineries produced 315,000 gallons in 1999 representing a 4.96% market share for all wine
sold in StateA (StateA Department of Agriculture). Of the 8.4 million gallons of wine sold
in StateA last year, only 415,000 gallons were StateA produced wines (StateA Department
of Agriculture). We believe there is sufficient market potential in StateA for Chapel Springs
Winery to thrive and be profitable.
Growth potential
A study performed by the Wine Market Council released this year shows wine consumption
up 17% in the U.S. This is largely due to the reports of health benefits of moderate wine
consumption and to an aging affluent baby boomer population. The market for superpremium wines ($7 to $14 a bottle) grew 15% last year, while luxury wines ($25 and up)
increased 18% according to the American Vintners Association. Sales of StateA-produced
wine rose from 292,032 gallons to 415,201 gallons over the last five years, a 42% increase.
(StateA Department of Agriculture)
StateA has a bright future regarding increased market-share potential. Some of the data that
supports this assertion include:
Data on total wine sales in StateA indicate substantial opportunity for the industry
and the state for expansion by the wine-production segment. Only about five percent
of the present potential is now being tapped. (James L. Watson & Associates, Impact
of Wine Production in StateA on the StateA Economy, for the StateA Department of
Agriculture)
StateAs wine industry has a major resource in the StateA Department of Agricultures
Grape and Wine Program. Established in 1984, it is used for research, development
and promotion of StateA grapes, wines and juices. The program coordinates
marketing and public relations activities with wholesalers, restaurateurs, retailers, and
the general public. Top priorities include building consumer awareness of the quality
and availability of StateA wines.
StateAs wine industry relies mainly on direct sales in the tasting room indicating
growth potential in outside regions, states and international sales. (StateA Department
of Agriculture).
Aging baby boomers have twice the income their parents did and theyre spending
more dollars on better wine. (Heather Pierce, A toast to StateA wine, The Metro
Dispatch, June 26. 200A)
14
In our opinion, the trend for increased wine consumption will continue, especially in premium
and luxury wines. We expect StateA wine sales to follow this trend. We believe the potential
for surpassing other regions is strong due to StateAs unique wine varietals, emphasis on
premium and luxury level wines, StateAs Grape and Wine Program and the wine industrys
connection to tourism, one of StateAs top three industries according to the Department of
Economic Development.
Industry trends
Ever since Morley Safer unearthed the French Paradox on the CBS news program 60
Minutes in 1991, wine sales and consumption have been on the increase. Reported health
benefits of moderate wine drinking has inspired U.S wine consumers to enjoy wine without
feeling guilty. Numerous medical studies show moderate use of wine to have health benefits
in preventing heart disease, cancer, osteoporosis, diabetes, and kidney stones (StateA
Department of Agriculture, Grape and Wine Program).
Americans enjoyed about two gallons apiece last year while the French, Italians, and
Portuguese swilled 15 gallons a head, according to AVA. Red wine quality and sales are on
the rise despite their higher prices due to reported health benefits. Women as well as men
are drinking more red wine and the core wine consumer market is reaching its peak spending
age of 46 years old (Vineyard and Winery Management, March/April 2000).
Another trend developing with progressive wine drinkers is the movement away from
mainstream wine regions such as California to smaller, more unique wine regions that offer
something different and special. Oregon wines have followed this trend. Regional wines that
are distinct, unique and of high quality are attracting attention and becoming more popular
according to Don Foust, a Metro City-based wine writer that holds the Master of Wine and
Master Sommelier designations. StateAs potential for growth as a regional wine producer
of high quality and distinct style wines is strong in our opinion.
We believe the southwest corner of StateA offers great potential for wine consumption
growth due to the increase of affluent retired couples moving into the area. Buena Vista,
StateC (a dry county), just 20 miles south of Auxville has a population of over 10,000 retired
affluent professionals, many of which drink wine and are looking for high quality activities.
Other characteristics
Wines are produced in many countries around the world including France, Italy, Germany,
Spain, Chile, Australia, and the United States. The top 20 wine-producing states in the U.S.
are led by California, New York, and Washington.
The StateA wine industry capitalizes on several seasonal opportunities for increased wine
sales. These seasons include harvest during September, October fest, Thanksgiving and
Christmas holidays, New Years, Easter, May fest, and summer vacation season. Each of
these seasons offers an opportunity for a special event at the winery.
15
Chapel Springs Winery will create an emphasis on seasonal wine sales through events
hosted at the vineyard and winery including:
Harvesting weekend Events
New bottling releases
Tasting parties for the holiday season
Spring into Wine weekend party
Summer picnics with local music
Cellar tasting tours
Local artist studio cellar parties
Special reserve barrel tastings
We will communicate these events through a quarterly newsletter to our registered
customers, and through local and regional community networks.
Small boutique-type wineries like Chapel Springs Winery that sell premium wines directly
to the consumer in the tasting room have the highest profit margins in the industry. StateA
wineries selling retail from their premises typically have a profit margin ranging from 50% to
75% (StateA Grape and Wine Program). The average cost of gross sales for a bottle of wine
is approximately $3.50 (AVA) and can be sold for $8.00 to $26.00. Larger wineries that rely on
volume sales through a three-tier distribution system typically have smaller profit margins of
10 to 20%.
Large wineries producing 10,000 to 100,000 gallons of wine a year typically use the three-tier
system (i.e. winery to distributor to retailer.) Approximately 90% of StateA wineries sell wine
directly from their tasting room and winery.
Chapel Springs Winery will rely initially on direct retail sales from the tasting room and focus
on building customer relationships. We may also sell a small quantity to select restaurants
and wine shops in the Metro City area for winery promotion and recognition.
16
Competitive analysis
Differentiators that
Build Competitive
Advantage
Chapel
Springs
Vintage
Winery
Russels
The Nook
Oak Place
Core competencies
Varietals
Location
Reputation
Production
Reputation
Products or services
perceived by the
customer as superior
to others in the market
or industry
Wine
pairings
Price
Stewards
knowledge
Unknown
Service
Target market or
niche the company
serves better than
anyone else
Serious
wine lovers
Tourists
Special
events
None
Retired set
Unique distribution
channel or delivery
method
No
No
No
No
No
Organizational
efficiency
Processes
still in
development
Competes
on price
Ambience
Production
system
produces
mass
quantities
Staff is the
best
Technology or
innovative products
or services unique in
the market
Varietals
Marketing
is strength
are uniquequality control
of grapes
Elaborate
dcor for
events
No
Time
spent with
customers
New to
market
Location
Grape quality No
innovation,
is inferior
prices
inflated
Weaknesses
Weaknesses in the
product or service,
marketing, or
organization and
other weaknesses
Service is
poor
Our competitions profile consists of:

Small boutique wineries producing less than 5,000 gallons annually
Price range of $8 to $24 a bottle
Tasting room and banquet room
Cellar room tours and tasting
Picnic facilities and special events
17
Chapel Springs Winerys direct competition is StateAs 32 wineries and StateCs five wineries.
Several new wineries are planned in the southwest StateA area according to the StateA
Grape and Wine Program. However, we believe new local wineries will increase consumer
interest in the regions wines and improve recognition and acceptance of our wines.
Indirect competition exists from U.S. wines produced by California, Washington, New York
and other states, as well as foreign-made wines. Many of these wines produced by the
large volume wineries are cost competitive and targeted to traditional wine consumers that
spend an average of $4.00 a bottle (Clark Smith, University of California-Davis). This segment
will not be our focus.
Substitute competition may occur with a small segment of the population involved in home
winemaking; however, this segment is drawn to small boutique-type wineries and often help
promote such vineyard and winery operations.
Wine competes for customers on several levels. The consumer who chooses his or her wine
on price alone is not part of our target market. Wines are also chosen based on vineyards,
taste and food selection. Ambience can play a key role. The customer must not feel
intimidated or ignorant.
Chapel Springs Winerys key competitive factors will be premium wine quality, unique
varietals, and a very friendly atmosphere at the winery. Our mission is to craft distinct
premium wines that are very approachable to new wine drinkers and experienced wine
enthusiasts alike, and to promote a healthy wine experience through education. Our location
will also serve to make us the first choice among wine enthusiasts in the area.
Market analysis
Target market profile
Core wine consumers are defined by the Wine Market Council as individuals who drink wine
once per week. Of the core group, 11% generate roughly 88% of U.S. wine sales. Our
target market is the top 11% of wine consumers known as progressive wine drinkers. These
individuals tend to be 45 to 55 years old, have the greatest amount of disposable income,
and have some experience with wine. This group also likes to dine out and have wine with
meals, during celebrations, and holidays.
Our second market is the new wine drinker with little or no experience tasting wine. This
group is looking for a safe, non-threatening environment where it can experiment and learn
about wine. Many of these individuals are young professionals, 25 to 35 years of age with
disposable income.
Chapel Springs Winerys philosophy is simple. Treat each guest as a friend, and share with
him or her our passion for wine.
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Customer profile
AGE

Baby boomers 45-54

Young professional 25-35
Retired professional 65-75
SEX
Male and female
PROFESSION

INCOME
$40,000 and up
GEOGRAPHIC

SOCIAL CLASS
Middle-upper class
LIFE STYLE

Active and healthy

Travels
Socializes
80% Internet active
PERSONALITY

Enjoys good food and wine

Aware of health benefits of wine
Rewarded by hedonism
Wants something unique
Likes art and music
Corporate professional
Professors
Lawyers
Young business men and women
Western StateA
Northern StateC
Eastern StateB
Northeast StateD
Future markets
As we grow and increase production, we will consider distributing wine to selective markets
such as Big Bluff, StateC; St. Martin, StateA; Warsaw, StateB; Trent, and State City, StateD;
and Demont, StateE. We plan to capitalize on the regional wine market and maintain a
regional presence.
19
Pricing
Pricing structure
Our prices will be competitive with other boutique shops but priced to position our wines as
worth a little more.
Price list
Pricing per bottle will be as follows:
Traminette
$11.00
Chardonel
$12.00
Vignoles
$14.00
Chambourcin
$14.00
Cabernet Franc
$17.00
Norton
$19.00
Gross margin on products
Varietal

Cost
per
bottle
Price
per
bottle
Gallons /
bottles
of wine
Cost of
Retail
gross sales price
Gross
margin
Traminette
$3.85
$11.00
1,000g/5,000
19,250
55,000
35,750
Chardonel
$4.20
$12.00
750g/3,750
15,750
45,000
29,250
Vignoles
$4.90
$14.00
500g/2,500
12,250
35,000
22,750
Chambourcin
$4.90
$14.00
750g/3,750
18,375
52,500
34,125
Cabernet Franc $5.95
$17.00
250g/1,250
7,438
21,250
13,812
Norton
$19.00
1,000g/5,000
33,250
95,000
61,750
$6.65
Totals
4,250g/21,250 $106,313
$303,750 $197,437
Pricing policies
Volume pricing will not be offered during the forecast period. In the future, as distribution to
outside vendors grows, volume pricing will be studied.
20
Market penetration
Our primary means of distribution will be direct sales from the winerys tasting room. Special
events such as wedding receptions, banquets, family and club gatherings at the winerys
banquet hall will offer additional opportunities for sales. A small amount (less than 2%) will be
sold through select restaurants and wine specialty shops in the Metro City area
StateA has an advantage in that most of the wine sales are made from the winery, eliminating
distributors and retailers, and keeping all of the profit within the winery (StateA Grape and
Wine Program).
Location
Chapel Springs Winery is located in Auxville, StateA. State A is known for its grape
vineyards and tourism is one of its top three industries.
Direct sales force
Linda Oberon, Vice President of Facilities and Sales, will manage the tasting room
operations, along with Jill Freeman, Vice President of Marketing. Wine poured in the tasting
room is estimated at 1,200 bottles annually equaling $4,368 in cost of goods produced.
Jill will develop and cultivate relationships with several key restaurants and wine shops in the
Metro City area. Restaurants may include Stolen Sizzle, BBs, Matt Zs, LaBistro, and other
small, up-scale venues that have unique wine offerings. Wine specialty shops may include
Ryland Liquors, Homers, and Larrys Liquors in Metro City, and Red Rover in Springton.
Salary amounts for the four members will be dependent upon gross margin and profit and
are initially projected at $18,000 annually with $2,000 in benefits.
Brand identity
Chapel Springs Winery believes very strongly in the importance of product image,
presentation and quality packaging. We will use heavy weight, high quality bottles from
Dempos Glass in Louisville, Kentucky, which are more expensive than most other bottles.
Red wines will be bottled in the Tempest (Bordeaux) style in antique green and dead leaf
green, and white wines bottled in Allegro (Burgundy style) in flint. Bottle costs are $.55
each.
Our label will be design by Barclay Consulting, a wine marketing firm in California that
specializes in wine marketing and label design. Label design costs are budgeted at $1,500.
Pressure sensitive label stock and printing costs are estimated at $.20 each. Grade A,
number 9 (1.25) corks will be purchased from APM at a cost of $.10 each. Wax seals in
coordinating colors will be used with a cost of $.02 each.
Our wine presentation/packaging will be distinctive and upper end making our wines
unique compared to regional competitors.
21
Customer service
Chapel Springs Winery will replace wines that have been returned to the winery as flawed, or
cork tainted. We estimate a 0.25% return or one out of 400 bottles.
Advertising and promotion
Our advertising campaign will begin with press releases announcing the opening of the
areas first winery to local and regional newspapers and television stations for potential
special interest stories/coverage. We will target our press releases to Metro City, Bonnertown,
Springton, StateA, Rivera, Hillsdale, Benton, Bonville, and Fayette, StateC. In addition to
the winery, our press releases will inform the media of Chapel Springs Winerys banquet hall
available for special occasions such as wedding receptions, parties, company retreats and
reunions.
On occasion, we will offer press releases of noteworthy events such as our harvest parties,
community involvement and medals from high profile national competitions. Some of the
special events that will be announced include Art and Wine Cellar Parties featuring regional
artists and their work, harvest parties, and the Spring Music Wine Festival.
Our harvest parties will take place every Saturday during harvest season (late August through
September) from 8:00 am to 12:00 pm. Each grape harvester will be treated to a lunch and
wine, and will receive a special edition T-shirt with our logo indicating their participation in
the annual harvest. In addition they will receive a coupon for a free bottle of wine during their
next visit. This experience will also benefit the winery in eliminating costs for grape harvesting
offsetting harvest party costs.
A quarterly newsletter will be sent to our registered customers or Chapel Wine Club. As
part of the registration, customer swill provide their email address and birthday for our
database. We will send each Wine Club member a Happy Birthday email notifying him or
her of a special birthday gift certificate redeemable at the winery.
We will have an interactive web site full of color photographs of the vineyard and winery
with buttons for the wine list, a map to the winery, a virtual tour of the winery, vine and wine
educational fun facts, and up-coming events.
In addition, the StateA Grape and Wine Program will assist in promotion through the Taste
StateA Wine campaign including brochures, wine maps, area tastings, and Web site. We
believe the most effective advertisement will be word of mouth from our customers and will
focus on customer satisfaction and relationships.
Publicity
Chapel Springs Winery and its special events will be included the state and regional tourist
brochures. Special events will also be promoted through press releases and our Web site.
Direct mail
Our fixed costs through 200D, including salaries, facility and utilities, are estimated at
$50,000 annually. Variable costs per bottle are estimated at approximately $8.33 (including an
average $5.00 per bottle direct cost of goods sold). At this level of staffing and production it
will take sales of 7,500 bottles @ $15.00 to break even.
22
Internet
A Web site will detail our selections and show pictures of our tasting room and special events
venue. Eventually, the plan is for the site to be interactive. The quarterly newsletter will be
posted and historical newsletters will be available.
Trade shows
Chapel Springs Winery will participate and display wines for tastings in StateAs Taste StateA
Wines events held in Metro City, St. Lawrence and Springton. The tasting in Metro City has
been held each April at the Metro City Art Museum or Museum of Modern Art. There are
no costs other than travel expenses and wine poured. The average number of wine lovers
attending is 200.
Market activities schedule
April 200B
Establish a web site
September 200B
StateA Wine
Brochures
April 200C
Press Release:
New Vineyard
August 200C
Press Release:
Harvest
November 200C
Newsletter
Quarterly
November 200C
Press Release:
Winery Opening
Market penetration effectiveness

As we develop brand awareness in the region and accumulate national competition medals,
we will begin developing relationships with select restaurants and wine shops for possible
distribution. We will also invite local and regional wine writers to visit the vineyard and winery
for special VIP tastings and tours.
Our Web site and newsletter will offer free delivery of Chapel Springs wines purchased over
the Internet or through mail orders. Special discounts for case orders will also be offered.
23

Operations Plan
Operational systems
Receiving orders
Initially, all sales will be made in the tasting room. As we grow and increase market awareness,
we will market our wines through a select group of boutique restaurants and wine shops
in Metro City. We will maintain a close relationship with each of our select markets and
proactively fill orders through special promotions and events. We will enable our small group of
restaurants and wine shops to fill their orders at any time by a simple phone call, fax or email.
Billing the customers
Chapel Springs Winery sales in the tasting room will be retail based, requiring cash or credit
card at time of purchase. Billing to our select restaurants and wine shops will be initially on
a consignment basis. As we establish our brand within each location, we will arrange for
payments of 50% up front with the remainder collected 30 days after retail sale.
Paying the suppliers
We will pay our suppliers upon delivery with a company American Express card, allowing us
to consolidate and track expenses. For grapes purchased from our sister business, Oberon
Vineyards LLC, we will transfer funds from our corporate bank account to the Oberon
Vineyards account upon harvest of grapes.
Collecting the accounts receivable
Inventory levels at our restaurant and retail liquor outlets will be verified every two weeks.
Invoices will then be sent for bottles sold. Payment due dates will be within 30 days from
billing date. At 30 days, any outstanding receivables will be sent a reminder notice. At 45 days,
outstanding receivables will be called and payment arrangements determined. Relationships
will be continued with only those outlets that pay in a timely fashion.
Reporting to management
Our four-member team will maintain an informal communication process and will document
weekly activities in a business diary for advisory board review. If and when the need for
additional employees becomes apparent, a more structured communication system will be
instituted with report structure and procedures.
Staff development
Linda Oberon and Jill Freeman will attend a short course in wine tasting room management
and techniques offered by Barclay Consulting in San Francisco, California, in January 2001.
We will continue to promote ongoing training and education in each members respective area.
24
Inventory control
Our inventory control will follow the Bureau of Alcohol, Tobacco, and Firearms excise tax
reporting and bonding requirements, maintaining accurate figures on gallons in process
(fermentation tanks, stainless steel tanks, and oak cooperage) and bottled wine stored in
bonded storage areas. A computerized system will be used to track and monitor inventory in
the winery.
Retail inventory in the tasting room will be controlled with the use of a computer program.
Handling warranties and returns
Chapel Springs Winerys policy will be to replace without question a returned flawed bottle
of wine with a bottle of the same variety. (On occasion, a bottle of wine may develop an off
aroma due to a cork induced problem called cork taint. Industry averages for cork taint are
approximately 1%; our small production volume and personal involvement in all processes
should reduce our return rate).
Monitoring the company budgets
Paul Oberon and Jill Freeman will review budgets monthly and prepare an analysis for Bill
Freeman and Linda Oberon. The members will then evaluate the need for modifications or
adjustments in spending.
Security systems
As required by the BATF, our winery will be bonded and secured with perimeter lighting,
controlled access and secured doors and windows. A commercial alarm system will be
incorporated into the building during construction. Cash accumulated on the premises from
wine sales will be kept in a safe and bank deposits will be made frequently.
All business-related data kept on computer will be stored off site with daily backup copies
made of the data stored in a separate location.
Documents and paper flow
Each batch of wine will have a data sheet identifying the varietal(s), date harvested, grape
chemistry numbers, alcohol content, applied winemaking techniques, processing additives,
and gallons. We will fill out the sheet as the wine is processed to meet BATF excise tax and
record-keeping needs. A copy of a sample data sheet is included in the appendix.
Operations system workflow

Our product will begin its life cycle in the harvest season as the grape varietals begin to
ripen. In August, Bill Freeman will take period grape samples to analyze for ripeness. Grape
ripeness will be based on juice chemistry including pH, brix (sugar level), titratable acidity,
color, texture, and most importantly taste and aroma. Bill Freeman will be responsible for
making the decision to harvest each varietal. Harvest dates will coincide with weekends
in August and September when possible to incorporate our Harvest Party events allowing
guests to join the grape picking.
25
Our wine release schedule will be as follows:

Traminette, Vignoles and Chambourcin blush wines will be released in November,
through February (three to six months) following the harvest.
Chardonel barrel fermented and aged wines will be released 12 to 18 months
following the harvest.
Chambourcin, Norton and Cabernet Franc barrel aged wines will be released 18 to 24
months following harvest.
Manufacturing
The following steps and their respective time lines outline our winemaking process:
Harvest Harvest will occur during the early morning hours to maintain cool grape
temperatures. Grapes will be immediately taken to the crushing pad for crushing
(vineyard is located adjacent to the winery). August and September.
Crush and press Each grape varietal will be destemmed, crushed (broken
open), and/or press pressed, based on the style and type of wine to be made. This
step separates the juice from the skins, stems and seeds and prepares the juice for
fermentation August and September.
Fermentation Once the juice is settled and separated from the sediment, the
juice is adjusted to appropriate acid, pH and sugar levels and inoculated with a
specific wine yeast culture to begin the fermentation process. The fermenting juice is
maintained in a temperature-controlled fermentation tank and allowed to ferment for
period of time (10 to 30 days).
Aging and storage After fermentation, the wine is racked into a storage vessel (i.e.
stainless steel tank or oak barrel) for settling and stabilizing. Some wine is aged in oak
barrels to impart oak characteristics. Fruity white and blush wines are aged for 3 to 6
months, while red wines may be aged 6 to 24 months.
Fining, filtering, and bottling Fining is used to settled out microscopic particles
suspended in the wine and to improve the quality and clarity of the finished product.
Filtering is also used to finish and clear the wine, removing unwanted proteins and
other micro particles. After cold and heat stabilization, the wine is ready to be bottled,
labeled and case packed.
Financial requirements
Bill and Jill Freeman will seek a loan of $55,000 for the design and construction of the winery
in April 200B. The Freemans will lease the winery facility to the company. Chapel Springs
Winery will seek a $25,000 loan for wine production equipment in April 200C.
Operational improvements
In 200E, additional equipment will be added to allow increased production.
26

Financial Plan
Start-up costs
The start-up costs to develop the wine varietals and plan for the facility have been absorbed
by the owners over time. Equipment and facility costs will be one time costs until expansion
is needed.
Sales projections
Chapel Springs Winery will begin generating revenue during the November 200C grand
opening. Our profitability ratios will begin to increase in 200F as we gain volume and
efficiencies. Below are our wine sales projections:
200C wines sales - $13,260
Our 200C harvest is estimated to produce 2,000 gallons of wine, with 1,500 gallons
(500 each) of Traminette ($12 a bottle), Vignoles Desert Wine ($14), and Chambourcin
Blush ($13 a bottle) that we will bottle by early November and have ready for sale at
the opening date. Our research of similar winery operations sales indicates for the
first year average monthly sales of $6,500 (500 bottles X $13) operating five days a
week (Wednesday, Thursday, Friday, Saturday, and Sunday from 11:00 am to 5:00
pm). Using this average along with the seasonal percentages of sales from the table
below we estimate November sales of $6,240 and December sales of $7,020.
200D wine sales - $135,000
For the first six months of 200D, the start-up sales average of $6,500 per month as
affected by the seasonal percentages is used to project sales. In July, as several
higher-end wines are bottled and available, revenues are expected to increase to an
average of $13.50 a bottle ($7,500 a month) with average monthly sales of 550 bottles
(these averages are then calculated according to seasonal fluctuations). Our gallons
of-wine-produced will increase to 4,000 gallons in 200D with approximately 30% of
the inventory being aged for release in 200E or 200F.
200E wine sales - $192,000
We project our production to be 5,000 gallons in 200E. Annual bottle sales will
increase to 12,000, including releases of previous-year higher-end red wines. Our
sales in 200E are projected to be $192,000 based on 12,000 bottles at an average
price of $16 a bottle.
27
We are aware that wine sales tend to vary by month and season. Based on our research of
similar StateA wineries, we estimate our percentage of revenue by month in the table below:

January
3%
February
3%
March
4%
April
4%
May
5%
June
9%
July
10%
August
12%
September
15%
October
18%
November
8%
December
9%
The tasting room gift shop will offer retail sales of wine glasses and accessories, local crafts,
artwork, regional cheeses, sausages, and breads, generating an estimated annual revenue of
$40,000 in 200D. This represents approximately 31% of wine revenue, which closely mirrors
the industry averages. Our rental of the winerys banquet room is estimated to generate
$6,000 annually (projecting an average of 12 events during spring, summer and fall seasons,
at $500 each rental). This is a conservative estimate based on similar operations.
28
Total Estimated Revenue by Year

Total
Wine
Gift shop
Banquet room
200C
$ 13,260
$ 13,260
200D
$132,640
$ 86,640
$40,000
$6,000
200E
$260,520
$192,000
$59,520
$9,000
Income projections
Chapel Springs Winery will run at a loss of ($8,809) the first year of operations. In 200D we
project a modest profit of $27,771 possible because the owners will delay taking salaries until
well into the year. Profits will increase in 200E to $63,093. It will take several years after the
forecast period to realize the high profit margins common to the industry.
Cash requirements
We will use an American Express card to make purchases for supplies and materials to avoid
interest charges and maintain cash flow. We anticipate cash levels in our corporate bank
account to be kept around $10,000 for our American Express charges and other expenses.
Pratt Energy Systems of Rogers, StateC, estimates the design and construction of our energy
efficient winery to be $80,000. We project $25,000 for winery production equipment, tanks
and cooperage. $36,000 in additional equipment will be needed for expanded production
in 200E.
Start-up investment will cover cash flow requirements for the first year and a-half. Due
to the slow selling season at the beginning of every year, there are likely to be cash flow
requirements by early spring of each year.
Sources of financing
The owners will invest $30,000 start-up capital in 200B.
Bill and Jill Freeman will seek a personal mortgage loan of $55,000 for the facility, which will
be leased to Chapel Springs Winery fully furnished for $500/month.
We will seek an equipment loan for the $25,000 on a 5-year term at 12% interest and will
apply for the Wine & Grape Production Tax Credit Program offered by the StateA Department
of Economic Development, which will issue a state income tax credit of 25% of the purchase
price of all new winery equipment and materials.
The addition of $36,000 in equipment scheduled for October, 200E will be funded through
cash flow.
A line of credit for $50,000 at 9% interest will be established at the beginning of year 200E
to cover seasonal cash shortages. Cash drawn from the line will be paid back during the
summer season.
29
Exit Strategy
As a family business, our exit strategy will be to pass the business on to our two sons
(50/50), or lease the business to a third party. In the event we are unable to lease the
business, we will cease operations and sell the equipment and supplies. The winery building
would then be converted to a farm home in the woods with a really nice wine cellar.
30
START-UP FUNDING & EXPENDITURES

Chapel Springs Winery, LLC
Start-Up Cash
Equity Investments
Loan Proceeds
Real-Estate Loans
Total Start-Up Cash
30,000
30,000
Start-Up Expenditures
Security Deposits
Rent (last month's)
Telephone Deposit
Utilities Deposit
Other Deposits
Total Security Deposits
Other Costs
Opening Inventory
Capital Expenditures
Computer Equipment
Equipment & Machinery
Furniture & Fixtures
Vehicles
Leasehold Improvements
Building
Land
Total Start-Up Capital Expenditures
Start-Up Expenses
Accounting Fees
Activation Fee
Corporate Fees & Taxes
Federal Tax ID
Fictitious Name Costs
Insurance
Legal & Consulting Fees
Marketing
Meals & Entertainment
Office Expense
Office Supplies
Payroll Expenses (training/setup)
Salaries & Wages
Payroll Taxes
Benefits
Pre-opening Advertising
Printing (cards, stationery, brochures)
Rent
Sales Tax Permit
Other Start-Up Expenses
Total Start-Up Expenses
500
500
1,100
Total Start-Up Expenditures
1,100
100
-

Cash Flow Report (Projected)
200C
Cash In
Cash Sales
Collections from Accounts Receivables
Equity Received
Loans Received
Other Cash In (receipts from other assets)
Other Cash In (for example, interest, royalites)
Total Cash In
Total Cash Available
Cash Out
Inventory Expenditures
Inventory/Raw Material (Cash)
Inventory/Raw Material (Paid on Account)
Production Expenses
Operating Expenses
Advertising
Bank Charges
Dues & Subscriptions
Insurance
Licenses & Fees
Marketing & Promotion
Miscellaneous
Office Expense
Office Supplies
Outside Services
Payroll Expenses
Salaries & Wages
Payroll Taxes
Benefits
Professional Fees
Property Taxes
Rent
Repairs & Maintenance
Shipping & Delivery
Telephone
Training & Development
Travel
Utilities
Vehicle
Wine Samples
Excise Tax
Other
Paid on Account
Non-operating Costs
Capital Purchases
Estimated Income Tax Payments
Interest Payments
Loan Principal Payments
Owner's Draw
Other Cash Out
Total Cash Out
Monthly Cash Flow (Cash In - Cash Out)
Beginning Cash Balance
Ending Cash Balance
Pre Start-Up
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
30,000
30,000
28,900
25,000
25,000
53,900
28,650
27,094
25,040
24,484
23,678
23,121
15,965
9,109
6,221
6,221
14,224
6,999
6,999
18,753
13,220
30,000
25,000
68,220
97,120
6,000
-
6,000
-
300
3,000
300
15,000
600
500
100
500
-
1,000
-
1,500
-
300
300
-
300
-
300
-
125
300
125
200
50
-
300
150
200
50
-
500
125
1,500
1,400
2,275
400
100
-
250
-
250
-
250
-
200
150
100
364
-
200
150
100
364
2,140
-
400
300
750
200
728
2,140
-
1,100
25,000
25,250
250
306
1,556
245
309
2,054
244
312
556
241
315
806
238
319
557
234
322
7,156
231
325
6,856
228
328
1,106
225
331
2,470
221
335
7,510
25,000
2,357
3,202
56,977
28,900
28,900
28,900
28,900
(250)
28,900
28,650
(1,556)
28,650
27,094
(2,054)
27,094
25,040
(7,156)
23,121
15,965
(6,856)
15,965
9,109
(1,106)
9,109
8,003
3,751
8,003
11,754
(511)
11,754
11,243
11,243
11,243
30,000
-
(556)
25,040
24,484
(806)
24,484
23,678
(557)
23,678
23,121

200D
Cash In
Cash Sales
Equity Received
Loans Received
Total Cash In
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
3,529
3,529
14,773
3,529
3,529
15,537
5,371
5,371
17,016
5,371
5,371
18,747
6,547
6,547
19,252
11,253
11,253
25,140
13,626
13,626
29,910
16,218
16,218
34,464
20,106
20,106
32,530
24,393
24,393
30,569
11,033
11,033
27,688
11,665
11,665
27,687
132,641
132,641
143,884
650
1,000
650
1,000
650
1,000
2,375
1,000
2,375
1,500
2,375
2,000
2,375
12,500
2,375
13,000
2,375
4,000
2,375
2,000
2,375
2,375
39,000
23,325
300
125
200
50
-
300
200
50
-
300
200
50
-
300
125
200
50
-
300
200
50
-
300
200
50
-
300
125
200
50
-
300
200
50
-
300
300
200
50
-
300
125
200
50
-
125
300
200
50
-
300
150
200
50
-
125
3,600
300
650
2,400
600
-
200
150
70
100
364
-
200
150
70
250
100
364
-
200
150
70
100
364
-
200
150
70
100
364
-
200
150
70
100
364
-
200
150
70
250
100
364
-
4,500
360
315
200
150
70
100
364
-
4,500
360
315
200
150
70
100
364
-
4,500
360
315
200
150
70
100
364
-
4,500
360
315
200
150
70
250
100
364
-
4,500
360
315
200
150
70
100
364
-
4,500
360
315
200
150
70
100
364
4,280
-
27,000
2,160
1,890
2,400
1,800
840
750
1,200
4,368
4,280
-
204
352
5,365
2,741
201
355
8,856
197
358
11,664
194
362
22,040
3,514
190
366
26,354
186
370
13,915
183
374
11,666
1,592
179
377
15,562
8,399
2,386
4,287
131,760
1,182
12,705
13,887
2,397
13,887
16,284
1,962
16,284
18,246
(5,822)
18,246
12,424
(6,248)
12,424
6,176
10,478
6,176
16,654
(633)
16,654
16,022
(3,897)
16,022
12,124
881
11,243
12,124
Cash Out
Production Expenses
Operating Expenses
Advertising
Bank Charges
Insurance
Licenses & Fees
Miscellaneous
Office Expense
Office Supplies
Outside Services
Payroll Expenses
Salaries & Wages
Payroll Taxes
Benefits
Professional Fees
Property Taxes
Rent
Shipping & Delivery
Telephone
Travel
Utilities
Vehicle
Wine Samples
Excise Tax
Other
Paid on Account
Non-operating Costs
Capital Purchases
Interest Payments
Owner's Draw
Other Cash Out
Total Cash Out
218
338
2,765
215
342
3,891
211
345
3,640
552
208
348
6,042

Ending Cash Balance
764
11,243
12,008
(362)
12,008
11,646
1,731
11,646
13,376
(671)
13,376
12,705

200E
Cash In
Cash Sales
Equity Received
Loans Received
Total Cash In
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
7,523
3,000
10,523
22,647
7,523
7,000
14,523
25,083
11,028
4,000
15,028
25,345
11,028
11,028
23,328
13,535
13,535
23,192
23,566
23,566
33,213
26,074
26,074
36,552
31,089
31,089
52,531
38,612
38,612
62,856
46,135
46,135
70,326
21,058
21,058
40,024
22,569
22,569
46,483
259,738
14,000
273,738
285,863
3,333
2,500
3,333
1,000
3,333
1,500
3,333
1,500
3,333
2,500
3,333
3,000
3,333
16,000
3,333
16,000
3,333
3,000
3,333
4,000
3,333
4,000
3,333
55,000
40,000
300
125
200
50
-
300
200
50
-
300
200
50
-
300
125
200
50
-
300
200
50
-
300
200
50
-
300
125
200
50
-
300
300
200
50
-
300
200
50
-
300
125
200
50
-
125
300
200
50
-
300
200
50
-
125
3,600
300
500
2,400
600
-
5,667
453
397
300
150
70
100
364
-
5,667
453
397
300
150
70
250
100
364
-
5,667
453
397
300
150
70
100
364
-
5,667
453
397
300
150
70
100
364
-
5,667
453
397
300
150
70
100
364
-
5,667
453
397
300
150
70
250
100
364
-
5,667
453
397
300
150
70
100
364
-
5,667
453
397
300
150
70
100
364
-
5,667
453
397
300
150
70
100
364
-
5,667
453
397
300
150
70
250
100
364
-
5,667
453
397
300
150
70
100
364
-
5,667
453
397
300
150
70
100
364
5,350
-
68,000
5,440
4,760
3,600
1,800
840
750
1,200
4,368
5,350
-
201
8,400
22,735
197
404
15,110
193
409
28,286
10,679
189
413
38,665
36,000
185
417
51,361
180
421
16,110
8,142
176
425
29,477
36,000
18,821
2,571
12,833
268,857
831
9,647
10,478
10,964
10,478
21,442
2,803
21,442
24,245
(53)
24,245
24,192
(5,226)
24,192
18,965
4,948
18,965
23,914
(6,908)
23,914
17,006
4,881
12,124
17,006
Cash Out
Production Expenses
Operating Expenses
Advertising
Bank Charges
Insurance
Licenses & Fees
Miscellaneous
Office Expense
Office Supplies
Outside Services
Payroll Expenses
Salaries & Wages
Payroll Taxes
Benefits
Professional Fees
Property Taxes
Rent
Shipping & Delivery
Telephone
Travel
Utilities
Vehicle
Wine Samples
Excise Tax
Other
Paid on Account
Non-operating Costs
Capital Purchases
Interest Payments
Owner's Draw
Other Cash Out
Total Cash Out
198
381
12,088
246
385
14,765
272
389
13,045
269
393
13,671

Ending Cash Balance
(1,565)
12,124
10,560
(242)
10,560
10,318
1,983
10,318
12,300
(2,643)
12,300
9,657
265
396
13,545
(10)
9,657
9,647

Year-End
Income Statement (Projected)
Net Sales (less returns & allowances)
Cost of Goods Sold
Gross Margin
Operating Expenses
Advertising
Bad Debt Expense
Bank Charges
Depreciation & Amortization
Insurance
Licenses & Fees
Miscellaneous
Office Expense
Office Supplies
Outside Services
Payroll Expenses
Salaries & Wages
Payroll Taxes
Benefits
Professional Fees
Property Taxes
Rent
Shipping & Delivery
Telephone
Travel
Utilities
Vehicle
Wine Samples
Excise Tax
Other
Total Operating Expenses
Operating Income
500
4,583
125
1,500
1,400
2,275
400
100
-
3.8%
0.0%
0.0%
34.7%
0.9%
11.3%
10.6%
17.2%
0.0%
0.0%
3.0%
0.8%
0.0%
0.0%
0.0%
0.0%
200D
132,641
42,896
89,745
100.0%
32.3%
67.7%
5,000
125
3,600
300
650
2,400
600
-
0.0%
0.0%
0.0%
3.8%
0.1%
2.7%
0.2%
0.5%
0.0%
0.0%
1.8%
0.5%
0.0%
116.5%
27,000
2,160
1,890
2,400
1,800
840
750
1,200
4,368
4,280
59,363
(6,457)
-48.8%
2,357
-
17.8%
0.0%
(8,814)
-66.7%
Income Taxes (if C Corp)

Net Income
100.0%
32.3%
67.7%
400
300
750
200
728
2,140
15,401
Interest Expense
Other Income (for example, interest)
Income Before Taxes
200C
13,220
4,275
8,945
(8,814)
0.0%
0.0%
0.0%
3.0%
2.3%
0.0%
0.0%
0.0%
5.7%
1.5%
0.0%
5.5%
16.2%
0.0%
0.0%
-66.7%
0.0%
20.4%
1.6%
200E
259,738
83,999
175,739
100.0%
32.3%
67.7%
6,800
125
3,600
300
500
2,400
600
-
0.0%
0.0%
0.0%
2.6%
0.0%
1.4%
0.1%
0.2%
0.0%
0.0%
0.9%
0.2%
0.0%
0.0%
26.2%
2.1%
44.8%
68,000
5,440
4,760
3,600
1,800
840
750
1,200
4,368
5,350
110,433
30,382
22.9%
65,306
25.1%
2,386
-
1.8%
0.0%
2,571
-
1.0%
0.0%
27,996
21.1%
62,736
24.2%
0.0%
0.0%
27,996
21.1%
62,736
24.2%
1.4%
0.0%
0.0%
1.8%
1.4%
0.0%
0.6%
0.0%
0.6%
0.9%
0.0%
3.3%
3.2%
0.0%
1.8%
0.0%
0.0%
1.4%
0.7%
0.0%
0.3%
0.0%
0.3%
0.5%
0.0%
1.7%
2.1%
0.0%
42.5%

Year-End
Balance Sheet (Projected)
200C
200D
200E
Assets
Current Assets
Cash & Equivalents
Accounts Receivable
Inventory
Security Deposits
Other Current Assets
Total Current Assets
11,243
11,325
22,568
12,124
30,754
42,878
17,006
41,754
58,760
Fixed Assets
Property, Plant & Equipment
Less: Accumulated Depreciation
Net Fixed Assets
Other Non-Current Assets
Total Non-Current Assets
25,000
(4,583)
20,417
20,417
25,000
(9,583)
15,417
15,417
61,000
(16,383)
44,617
44,617
Total Assets
42,984
58,295
103,376
6,000
6,000
Long-term Liabilities
Loans
Mortgages
Other Non-Current Liabilities
Total Non-Current Liabilities
21,798
21,798
17,511
17,511
12,678
12,678
Total Liabilities
21,798
17,511
18,678
30,000
(8,814)
21,186
30,000
19,182
(8,399)
40,784
30,000
73,519
(18,821)
84,698
42,984
58,295
103,376
Liabilities
Current Liabilities
Accounts Payable
Line of Credit
Other Current Liabilities
Total Current Liabilities
Equity
Equity Investments
Retained Earnings
Less: Owner's & Investor's Draws
Total Equity
Total Liabilities and Equity

Financial Ratios
200C
200D
200E
Net Income
Net Sales
-66.67%
21.11%
24.15%
Gross Margin
Net Sales
67.66%
67.66%
67.66%
Operating Expenses
Net Sales
116.50%
44.75%
42.52%
Return on Assets (ROA)
Net Income
Total Assets
-20.50%
48.02%
60.69%
Return on Equity (ROE)
Net Income
Total Equity
-41.60%
68.64%
74.07%
Profitability Ratios
Net Margin
Gross Margin
Expense Analysis
Efficiency Ratios
Inventory Turnover
Cost of Goods Sold

Inventory
Accounts Receivable Turnover
0.38
1.39
2.01
Yearly Credit Sales

Accounts Receivable
#DIV/0!
#DIV/0!
#DIV/0!
Total Current Assets

Total Current Liabilities
#DIV/0!
#DIV/0!
9.79
Current Assets - Inventory

Current Liabilities
#DIV/0!
#DIV/0!
2.83
Liquidity Ratios
Current Ratio
Quick Ratio
Risk Ratios
Debt Ratio
Total Liabilities
Total Assets
0.51
0.30
0.18
Debt to Equity
Total Liabilities
Total Equity
1.03
0.43
0.22
Cash Cycle
Days Receivable
Accounts Receivable x 365

Sales per year
Days Inventory
Inventory x 365
COGS per year
Days Payable
Days Payroll Accrual
Cash Cycle
967
262
181
Numer of Days
Between Pay Periods
14
14
14
Days Receivable + Days

Inventory - Days Payable
- Days Payroll Accrual
967
262
181
Accounts Payable x 365

COGS per year

Supporting Documents
Appendix
Appendix
SALES PROJECTIONS
YEAR 1
YEAR 1
YEAR 1
YEAR 1
Year 1
Sales Budget
Wine
Gift Shop
Bankquet Room
Product/Service Category D
Product/Service Category E
Product/Service Category F
Product/Service Category G
Gross Sales
Less: Returns & Allowances
Net Sales
Other Income
Total Income
Credit Management
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
YEAR 1
YEAR 1
YEAR 1
Year 1 Assumptions
Wine
Gift Shop
Bankquet Room
Other Income
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
6,240
6,240
(19)
6,221
6,221
7,020
7,020
(21)
6,999
6,999
13,260
13,260
(40)
13,220
13,220
6,221
-
6,999
-
13,220
-
based on industry averages for start-up boutique winery--seasonal schedule in Financial Plan introduction sectrion of plan - avg bottle price $13.00
estimated at .25% based on industry averages for boutique operations
Appendix
SALES PROJECTIONS
YEAR 2
YEAR 2
YEAR 2
YEAR 2
Year 2
Sales Budget
Wine
Gift Shop
Bankquet Room
Gross Sales
Net Sales
Other Income
Total Income
Credit Management
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
YEAR 2
YEAR 2
YEAR 2
Year 2 Assumptions
Wine
Gift Shop
Bankquet Room
Other Income
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
2,340
1,200
3,540
(11)
3,529
3,529
2,340
1,200
3,540
(11)
3,529
3,529
3,120
1,600
667
5,387
(16)
5,371
5,371
3,120
1,600
667
5,387
(16)
5,371
5,371
3,900
2,000
667
6,567
(20)
6,547
6,547
7,020
3,600
667
11,287
(34)
11,253
11,253
9,000
4,000
667
13,667
(41)
13,626
13,626
10,800
4,800
667
16,267
(49)
16,218
16,218
13,500
6,000
667
20,167
(61)
20,106
20,106
16,600
7,200
667
24,467
(73)
24,393
24,393
7,200
3,200
667
11,067
(33)
11,033
11,033
8,100
3,600
11,700
(35)
11,665
11,665
87,040
40,000
6,000
133,040
(399)
132,641
132,641
3,529
-
3,529
-
5,371
-
5,371
-
6,547
-
11,253
-
13,626
-
16,218
-
20,106
-
24,393
-
11,033
-
11,665
-
132,641
-
in July avg bottle price increases to $13.50 as aged wines are released for sales--avg bottles sold per month increases to 550
gift shop revenues based on industry averages and tied to seasonal nature of winery
12 events over 3 busy seasons -- events average $500 based on room rental and product purchases
Appendix
SALES PROJECTIONS
YEAR 3
YEAR 3
YEAR 3
YEAR 3
Year 3
Sales Budget
Wine
Gift Shop
Bankquet Room
Gross Sales
Net Sales
Other Income
Total Income
Credit Management
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
YEAR 3
YEAR 3
YEAR 3
Year 3 Assumptions
Wine
Gift Shop
Bankquet Room
Other Income
Sales (cash)
Sales (credit)
Received on Account
Bad Debt Expense
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
5,760
1,786
7,546
(23)
7,523
7,523
5,760
1,786
7,546
(23)
7,523
7,523
7,680
2,381
1,000
11,061
(33)
11,028
11,028
7,680
2,381
1,000
11,061
(33)
11,028
11,028
9,600
2,976
1,000
13,576
(41)
13,535
13,535
17,280
5,357
1,000
23,637
(71)
23,566
23,566
19,200
5,952
1,000
26,152
(78)
26,074
26,074
23,040
7,142
1,000
31,182
(94)
31,089
31,089
28,800
8,928
1,000
38,728
(116)
38,612
38,612
34,560
10,714
1,000
46,274
(139)
46,135
46,135
15,360
4,762
1,000
21,122
(63)
21,058
21,058
17,280
5,357
22,637
(68)
22,569
22,569
192,000
59,520
9,000
260,520
(782)
259,738
259,738
7,523
-
7,523
-
11,028
-
11,028
-
13,535
-
23,566
-
26,074
-
31,089
-
38,612
-
46,135
-
21,058
-
22,569
-
259,738
-
high-end aged wines released for sale--average bottle price increases to $16.00--avg 1000 bottles per month (based on industry averages for established co.)
based on industry averages related to wine sales
18 events over 3 busy seasons--events average $500 based on room rental and product purchases
Appendix
INVENTORY PROJECTIONS
YEAR 1
Year 1
Inventory Management
Inventory Purchases
Inventory/ Raw Material Purchases (Cash)
Inventory/ Raw Material Purchases (Credit)
Payment on Account
YEAR 1
YEAR 1
YEAR 1
Production Expenses
Freight-in & Trucking
Insurance
Payroll Expenses - production
Salaries & Wages
Employee Benefits
Payroll Taxes
Rent
Rework
Subcontracting
Utilities
Other Production Expenses
Inventory Production Expenses
YEAR 1
Inventory Balance
Beginning Inventory Balance
Inventory Purchased
Inventory Production
(Cost of Goods Sold)
Ending Inventory Balance
YEAR 1
YEAR 1
YEAR 1
Year 1 Assumptions
Inventory/ Raw Material Purchases
Insurance
Salaries & Wages
Employee Benefits
Payroll Taxes
Rent
Rework
Subcontracting
Utilities
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
6,000
6,000
-
6,000
6,000
-
3,000
3,000
-
15,000
15,000
-
300
300
300
300
600
600
6,000
6,000
6,000
6,000
12,000
12,000
12,000
15 tons of grapes at $800 per ton -- $3,000 inventory to stock gift shop
winemaster working without pay
proportional share of rent
Appendix
12,000
300
(2,012)
10,288
10,288
3,000
300
(2,263)
11,325
15,000
600
(4,275)
11,325
YEAR 2
Year 2
Inventory Purchases
Payment on Account
YEAR 2
YEAR 2
YEAR 2
Production Expenses
Insurance
Salaries & Wages
Employee Benefits
Payroll Taxes
Rent
Rework
Subcontracting
Utilities
YEAR 2
Inventory Balance
Inventory Purchased
YEAR 2
YEAR 2
YEAR 2
Year 2 Assumptions
Insurance
Salaries & Wages
Employee Benefits
Payroll Taxes
Rent
Rework
Subcontracting
Utilities
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
1,000
1,000
-
1,000
1,000
-
1,000
1,000
-
1,000
1,000
-
1,500
1,500
-
2,000
2,000
-
12,500
12,500
-
13,000
13,000
-
4,000
4,000
-
2,000
2,000
-
39,000
39,000
-
300
150
200
650
300
150
200
650
300
150
200
650
1,500
120
105
300
150
200
2,375
1,500
120
105
300
150
200
2,375
1,500
120
105
300
150
200
2,375
1,500
120
105
300
150
200
2,375
1,500
120
105
300
150
200
2,375
1,500
120
105
300
150
200
2,375
1,500
120
105
300
150
200
2,375
1,500
120
105
300
150
200
2,375
1,500
120
105
300
150
200
2,375
13,500
1,080
11,255
1,000
2,375
(1,737)
12,893
12,893
1,000
2,375
(2,117)
14,151
14,151
1,500
2,375
(3,639)
14,387
14,387
2,000
2,375
(4,407)
14,355
14,355
12,500
2,375
(5,245)
23,985
23,985
13,000
2,375
(6,502)
32,858
32,858
4,000
2,375
(7,889)
31,344
31,344
2,000
2,375
(3,568)
32,151
32,151
2,375
(3,772)
30,754
11,325
650
(1,141)
10,833
10,833
1,000
650
(1,141)
11,342
11,342
1,000
650
(1,737)
11,255
25 tons of grapes @ $800 per ton -- inventory restocking to keep levels at approximately $3,000
winemaster at $18,000 per year starting in April

benefits at 8%
payroll taxes at 7%
proportioanate share of rent
based on industry averages to maintain, clean and refurbish
based on proportionate share of utilities --estimate from local utility company
Appendix
3,600
1,800
2,400
#REF!
#REF!
#REF!
23,325
11,325
39,000
23,325
(42,896)
30,754
YEAR 3
Year 3
Inventory Purchases
Payment on Account
YEAR 3
YEAR 3
YEAR 3
Production Expenses
Insurance
Salaries & Wages
Employee Benefits
Payroll Taxes
Rent
Rework
Subcontracting
Utilities
YEAR 3
Inventory Balance
Inventory Purchased
YEAR 3
YEAR 3
YEAR 3
Year 3 Assumptions
Insurance
Salaries & Wages
Employee Benefits
Payroll Taxes
Rent
Rework
Subcontracting
Utilities
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
2,500
2,500
-
1,000
1,000
-
1,500
1,500
-
1,500
1,500
-
2,500
2,500
-
3,000
3,000
-
16,000
16,000
-
16,000
16,000
-
3,000
3,000
-
4,000
4,000
-
4,000
4,000
-
55,000
55,000
-
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
2,333
187
163
300
150
200
3,333
28,000
2,240
1,960
3,600
1,800
2,400
40,000
30,754
3,333
(2,433)
31,654
31,654
2,500
3,333
(2,433)
35,054
35,054
1,000
3,333
(3,566)
35,821
35,821
1,500
3,333
(3,566)
37,088
37,088
1,500
3,333
(4,377)
37,544
37,544
2,500
3,333
(7,621)
35,756
35,756
3,000
3,333
(8,432)
33,658
33,658
16,000
3,333
(10,054)
42,937
42,937
16,000
3,333
(12,487)
49,783
49,783
3,000
3,333
(14,920)
41,196
41,196
4,000
3,333
(6,810)
41,720
41,720
4,000
3,333
(7,299)
41,754
30,754
55,000
40,000
(83,999)
41,754
30 tons of grapes @ $800 per ton -- inventory restocking to keep levels at approximately $3,000
winemaster at $20,000 per year plus part-time help at $8000 per year
benefits at 8%
payroll taxes at 7%
proportioanate share of rent
based on industry averages to maintain, clean and refurbish
based on proportionate share of utilities --estimate from local utility company
Appendix
OPERATING EXPENSE PROJECTIONS

YEAR 1
YEAR 1
YEAR 1
YEAR 1
YEAR 1
YEAR 1
Year 1
Operating Expenses
Advertising
Bank Charges
Insurance
Licenses & Fees
Miscellaneous
Office Expense
Office Supplies
Outside Services
Payroll Expenses
Salaries & Wages
Payroll Taxes
Benefits
Professional Fees
Property Taxes
Rent
Shipping & Delivery
Telephone
Travel
Utilities
Vehicle
Wine Samples
Excise Tax
Other
YEAR 1
YEAR 1
YEAR 1
YEAR 1
YEAR 1
YEAR 1
Assumptions - Year 1
Advertising
Bank Charges
Insurance
Licenses & Fees
Miscellaneous
Office Expense
Office Supplies
Outside Services
Payroll Expenses
Salaries & Wages
Payroll Taxes
Benefits
Professional Fees
Property Taxes
Rent
Shipping & Delivery
Telephone
Travel
Utilities
Vehicle
Wine Samples
Excise Tax
Other
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
1,000
-
1,500
-
300
300
-
300
-
300
-
125
300
125
200
50
-
300
150
200
50
-
125
1,500
1,300
1,775
400
100
-
250
250
1,000
1,500
250
250
600
300
250
550
200
150
100
364
1,614
200
150
100
364
2,140
3,654
400
300
750
200
728
2,140
9,718
cost of two industry magazines

estimate form insurance agent
BATF bond -- state and local fees
label design -- newsletter in November -- web site maintenace fee in December
estimate for newsletter mailings and normal course of business

minimal supplies needed
owners working without pay this year
proportionate share of rent

based on landlord's estimate
attending three wine tastings per year (will travel by car)

proportionate share of utilities -- estimate from local utility company
based on industry averages
based on tax rate for bottles produced (not sold)
Appendix

YEAR 2
YEAR 2
YEAR 2
YEAR 2
YEAR 2
YEAR 2
Year 2
Operating Expenses
Advertising
Bank Charges
Insurance
Licenses & Fees
Miscellaneous
Office Expense
Office Supplies
Outside Services
Payroll Expenses
Salaries & Wages
Payroll Taxes
Benefits
Professional Fees
Property Taxes
Rent
Shipping & Delivery
Telephone
Travel
Utilities
Vehicle
Wine Samples
Excise Tax
Other
YEAR 2
YEAR 2
YEAR 2
YEAR 2
YEAR 2
YEAR 2
Advertising
Bank Charges
Insurance
Licenses & Fees
Miscellaneous
Office Expense
Office Supplies
Outside Services
Payroll Expenses
Salaries & Wages
Payroll Taxes
Benefits
Professional Fees
Property Taxes
Rent
Shipping & Delivery
Telephone
Travel
Utilities
Vehicle
Wine Samples
Excise Tax
Other
JAN
FEB
MAR
APR
MAY
300
125
200
50
-
300
200
50
-
300
200
50
-
300
125
200
50
-
300
-
200
150
70
100
364
1,559
200
150
70
250
100
364
1,684
200
150
70
100
364
1,434
200
150
70
100
364
1,559
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
200
50
-
300
200
50
-
300
125
200
50
-
300
200
50
-
300
300
200
50
-
300
125
200
50
-
125
300
200
50
-
300
150
200
50
-
125
3,600
300
650
2,400
600
-
200
150
70
100
364
1,434
200
150
70
250
100
364
1,684
4,500
360
315
200
150
70
100
364
6,734
4,500
360
315
200
150
70
100
364
6,609
4,500
360
315
200
150
70
100
364
6,909
4,500
360
315
200
150
70
250
100
364
6,984
4,500
360
315
200
150
70
100
364
6,734
4,500
360
315
200
150
70
100
364
4,280
11,039
27,000
2,160
1,890
2,400
1,800
840
750
1,200
4,368
4,280
54,363

state & local fees
quarterly newsletter -- website maintenance

three owner at salary of $18,000 beginning in July

Benefits @ 8%
Payroll taxes @ 7%


Appendix

YEAR 3
YEAR 3
YEAR 3
YEAR 3
YEAR 3
YEAR 3
Year 3
Operating Expenses
Advertising
Bank Charges
Insurance
Licenses & Fees
Miscellaneous
Office Expense
Office Supplies
Outside Services
Payroll Expenses
Salaries & Wages
Payroll Taxes
Benefits
Professional Fees
Property Taxes
Rent
Shipping & Delivery
Telephone
Travel
Utilities
Vehicle
Wine Samples
Excise Tax
Other
YEAR 3
YEAR 3
YEAR 3
YEAR 3
YEAR 3
YEAR 3
Advertising
Bank Charges
Insurance
Licenses & Fees
Miscellaneous
Office Expense
Office Supplies
Outside Services
Payroll Expenses
Salaries & Wages
Payroll Taxes
Benefits
Professional Fees
Property Taxes
Rent
Shipping & Delivery
Telephone
Travel
Utilities
Vehicle
Wine Samples
Excise Tax
Other
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
300
125
200
50
-
300
200
50
-
300
200
50
-
300
125
200
50
-
300
200
50
-
300
200
50
-
300
125
200
50
-
300
300
200
50
-
300
200
50
-
300
125
200
50
-
125
300
200
50
-
300
200
50
-
125
3,600
300
500
2,400
600
-
5,667
453
397
300
150
70
100
364
8,176
5,667
453
397
300
150
70
250
100
364
8,301
5,667
453
397
300
150
70
100
364
8,051
5,667
453
397
300
150
70
100
364
8,176
5,667
453
397
300
150
70
100
364
8,051
5,667
453
397
300
150
70
250
100
364
8,301
5,667
453
397
300
150
70
100
364
8,176
5,667
453
397
300
150
70
100
364
8,351
5,667
453
397
300
150
70
100
364
8,051
5,667
453
397
300
150
70
250
100
364
8,426
5,667
453
397
300
150
70
100
364
8,176
5,667
453
397
300
150
70
100
364
5,350
13,401
68,000
5,440
4,760
3,600
1,800
840
750
1,200
4,368
5,350
103,633

state & local fees
quarterly newsletter -- website maintenance

3 owners at $20,000 per year plus a part-time person at $8,000 per year
Benefits @ 8%
Payroll taxes @ 7%


Appendix
DEPRECIATION SCHEDULES
Year 1 Existing Assets
Set-Up Assets (no detail entered)
Set-Up Assets (detail entered)
Start-Up Purchases
Total
Start-Up Purchases
Total
Start-Up Purchases
Total
Year 1 New Purchases

Computer Equipment
Computer Equipment Depreciation
Equipment Depreciation
Furniture
Furniture Depreciation
Vehicles
Vehicle Depreciation
Leasehold Depreciation
Building
Building Depreciation
Computer Equipment
Furniture
Vehicles
Building
Computer Equipment
Furniture
Vehicles
Building
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL
25,000
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
25,000
4,583
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
5,000
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
417
-
36,000
1,017
-
1,017
-
1,017
-
36,000
6,800
-
Appendix
CAPITAL BUDGET PROJECTIONS

YEAR 1
YEAR 1
YEAR 1
Year 1
Capital Budget
Owner's Draw
Investor's Draw
Dividends Paid
Security Deposits
Amortization
Depreciation (existing assets)
Capital Asset Purchases
Depreciation (new purchases)
Land
YEAR 1
YEAR 1
YEAR 1
YEAR 1
Owner's Draw
Investor's Draw
Dividends Paid
Security Deposits
Amortization
Furniture
Vehicles
Building
Land
JAN
FEB
-
25,000
417
-
MAR
417
-
APR
MAY
417
-
JUN
417
-
Purchase of wine press, storage tanks, pumps (quote from vendor)
Appendix
JUL
417
-
AUG
417
-
SEP
417
-
OCT
417
-
417
-
NOV
DEC
417
417
Year 1 Total Depreciation
TOTAL
25,000
4,583
4,583

YEAR 2
YEAR 2
YEAR 2
Year 2
Capital Budget
Owner's Draw
Investor's Draw
Dividends Paid
Security Deposits
Amortization
Land
JAN
FEB
417
-
MAR
417
-
417
-
APR
MAY
417
-
JUN
417
-
YEAR 2
YEAR 2
YEAR 2
YEAR 2
Owner's Draw
Investor's Draw
Dividends Paid
Security Deposits
Amortization
Furniture
Vehicles
Building
Land
Appendix
JUL
417
-
AUG
417
-
SEP
417
-
OCT
417
-
417
-
NOV
DEC
417
417
TOTAL
5,000
5,000

YEAR 3
YEAR 3
YEAR 3
Year 3
Capital Budget
Owner's Draw
Investor's Draw
Dividends Paid
Security Deposits
Amortization
Land
YEAR 3
YEAR 3
YEAR 3
YEAR 3
Owner's Draw
Investor's Draw
Dividends Paid
Security Deposits
Amortization
Furniture
Vehicles
Building
Land
JAN
FEB
417
-
MAR
417
-
417
-
APR
MAY
417
-
JUN
417
-
Additional equipment for expansion (based on today's prices with 3% inflation factor)
Appendix
JUL
417
-
AUG
417
-
SEP
417
-
OCT
417
-
36,000
1,017
-
NOV
DEC
1,017
1,017
TOTAL
36,000
6,800
6,800
Equity Investment
Year 1
Year 2
Year 3
Real Estate Loans

Existing Balance
New Borrowing
Year 1
Outstanding balance
Year 2
Outstanding balance
Year 3
Outstanding balance
Repayment
Year 1 - principal
Year 1 - interest
Year 2 - principal
Year 2 - interest
Year 3 - principal
Year 3 - interest
JAN
FEB
-
MAR
-
Loan 2
Borrowing
Year 1
Outstanding balance
Year 2
Outstanding balance
Year 3
Outstanding balance
Repayment
Year 1 - principal
Year 1 - interest
Year 2 - principal
Year 2 - interest
Year 3 - principal
Year 3 - interest
FEB
-
JAN
MAR
-
FEB
-
JAN
MAR
FEB
JAN
342
215
385
171
FEB
-
JAN
JUN
JUL
FEB
APR
MAR
MAY
AUG
-
APR
MAR
APR
309
245
348
208
393
164
MAR
JUN
SEP
-
APR
JUL
OCT
-
JUN
MAY
JUN
NOV
-
MAY
319
238
358
197
404
152
JUL
-
JUN
-
JUL
-
SEP
DEC
-
SEP
AUG
TOTAL
-
SEP
AUG
328
228
370
186
417
140
OCT
OCT
-
DEC
DEC
NOV
DEC
335
221
377
179
425
131
NOV
TOTAL
21,798
17,511
12,678
NOV
331
225
374
183
421
135
DEC
22,133
17,888
13,103
TOTAL
-
NOV
22,464
18,262
13,524
OCT
SEP
-
NOV
OCT
DEC
-
325
231
366
190
413
144
OCT
22,792
18,632
13,941
AUG
322
234
362
194
409
148
NOV
-
SEP
23,117
18,998
14,354
OCT
-
AUG
JUL
AUG
23,439
19,360
14,763
315
241
355
201
400
156
SEP
-
JUL
23,758
19,718
15,167
MAY
312
244
352
204
396
160
AUG
-
JUN
24,073
20,073
15,567
JUL
-
MAY
24,385
20,425
15,963
MAR
306
250
345
211
389
167
JUN
-
APR
24,694
20,773
16,356
MAY
-
APR
-
338
218
381
175
Line of Credit
Existing Balance
TOTAL
25,000
-
TOTAL
3,202
2,357
4,287
2,386
4,833
1,843
TOTAL
-
DEC
-
TOTAL
-
Borrowing
Year 1
Outstanding balance
Year 2
Outstanding balance
Year 3
Outstanding balance
JAN
Repayment
Year 1 - principal
Year 1 - interest
Year 2 - principal
Year 2 - interest
Year 3 - principal
Year 3 - interest
JAN
Year 1 - total principal paid

Year 1 - total interest paid
MAY
-
JAN
Traditional Business Loan and/or Other Long-Term Loans

Loan 1 (existing loan or first new loan)
Existing Balance
New Borrowing
JAN
FEB
Year 1
25,000
Outstanding balance
25,000
Year 2
Outstanding balance
21,460
21,118
Year 3
Outstanding balance
17,130
16,745
Repayment
Year 1 - principal
Year 1 - interest
Year 2 - principal
Year 2 - interest
Year 3 - principal
Year 3 - interest
APR
-
FEB
3,000
3,000
MAR
7,000
10,000
FEB
23
4,000
14,000
MAR
75
105
APR
MAY
14,000
APR
14,000
MAY
105
105
JUN
6,000
JUN
8,000
45
3,202
2,357
4,287
2,386
12,833
2,571
Appendix
JUL
AUG
6,000
JUL
SEP
6,000
AUG
45
OCT
6,000
SEP
45
NOV
6,000
OCT
45
DEC
6,000
NOV
45
TOTAL
6,000
DEC
45
14,000
TOTAL
45
8,000
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BUSINESS PLAN

Business Plan Prepared By

1234 West 12th Terrace

Chapel Springs Winery Business Plan

MANAGEMENT AND ORGANIZATION PLAN

Chapel Springs Winery Business Plan

Paul S. Oberon, Ph.D. President & CFO

Bill K. Freeman, CSP, P.E. Vice President & Winemaker

Chapel Springs Winery Business Plan

Compensation and ownership

Board of directors/advisory board

Current accountant for

1010 Walnut, Suite 500

Current lawyer for

Dr. Mundi Dhrakamikari

Southwest StateA State University State enologist providing

Assists in developing StateA

Commercial vineyard and

Carl and Karen Gold

Smith, Tilden & Underwood

Contracts and franchise agreements

Recruitment and selection of employees

Employee reward and incentive plan

Communication and change

Chapel Springs Winery Business Plan

Features and benefits

Wine is a living product that will change with time.

Related products/services and spin-offs

The Wine Lab Scott Lab

Chapel Springs Winery Business Plan

Our competitions profile consists of:

Baby boomers 45-54

Male and female

Active and healthy

Enjoys good food and wine

Cabernet Franc $5.95

Market penetration effectiveness

Chapel Springs Winery Business Plan

Operations system workflow

Our wine release schedule will be as follows:

Chapel Springs Winery Business Plan

Total Estimated Revenue by Year

START-UP FUNDING & EXPENDITURES

Total Start-Up Expenditures

Chapel Springs Winery, LLC

Chapel Springs Winery, LLC

Monthly Cash Flow (Cash In - Cash Out)

Chapel Springs Winery, LLC

Monthly Cash Flow (Cash In - Cash Out)

Chapel Springs Winery, LLC

Income Taxes (if C Corp)

Chapel Springs Winery, LLC

Total Liabilities and Equity

Chapel Springs Winery, LLC

Return on Assets (ROA)

Return on Equity (ROE)

Cost of Goods Sold

Accounts Receivable Turnover

Yearly Credit Sales

Total Current Assets

Current Assets - Inventory

Accounts Receivable x 365

Days Payroll Accrual

Days Receivable + Days